Leading clever people

By Rob Goffee and Gareth Jones

Economists didn't see it coming - but what is clear is that we are facing the most serious economic crisis since 1929. No one can predict what the business landscape will look like when we do finally emerge from the downturn. But research suggests organisations that are well led will have much more chance of surviving these turbulent times

Keeping and leading the clever people who inhabit these organisations therefore becomes a critical challenge and there is a real concern that in this downturn, with a focus on cost reduction and headcount control, some organisations are becoming miserable places to be. Yet research has repeatedly demonstrated that creativity and innovation are inextricably linked to energy, edge and fun, which organisational attrition is in danger of crushing. Smart organisations know that the challenge is not to follow tradition and simply attempt to 'extract' more from employees. Instead, it's about making your organisation attractive to 'clever' people who already know how valuable they are.

So who are these 'clever' people (or 'clevers')? They are not simply those with the highest IQ or the most impressive academic qualifications (although many of them do score highly on these two measures). Clever people are highly talented individuals with the potential to create disproportionate amounts of value from the resources that the organisation makes available to them. We use the term 'clever people' to refer specifically to talented individuals who need an organisation to achieve their full potential.

Precisely what they do, of course, depends on the context, but they do it extraordinarily. Though not exhaustive, we identified nine common characteristics of clever people:

1. Their cleverness is central to their identity. For clever people what they do is who they are - they are defined by their passion not the organisation they work for..

2. Their skills are not easily replicated. If they were, then they would not be the scarce resource they are. The knowledge of clever people is tacit and is embedded in them.

3. They know their worth. They know their knowledge is hard to replicate and they have a clear understanding of their value. Such sentiments represent an important power shift. Confident in their own worth and ability, clever people exert pressure on their leaders.

4. They ask difficult questions. Knowing your worth means that you are more willing to challenge and question. Clever people are often incessant interrogators of those who hope to lead them.

5. They are organisationally savvy. It's assumed that clever people are too focused on their own expertise to play political games. Clever people will find the organisational context where their interests will be most generously funded. When the funding dries up they can engage in elaborate organisational politics to ensure that their pet projects are indulged.

6. They are not impressed by corporate hierarchy. They have an undisguised disdain for organisational hierarchy, which has important implications for leading them. Says Christina Kite of Cisco Systems: 'It's all about influencing through skill and knowledge, not through title.'

7. They expect instant access. If they don't get access to the chief executive they will assume that the organisation does not take their work seriously. The challenge for leaders is to balance open access with what might be regarded as interference.

8. They want to be connected to other clever people. Clever people need other clever people - and organisations - to achieve their full potential. For them, networking is not a social nicety but a source of perpetual improvement and bright ideas.

9. They won't thank you. Even when you're leading them well, clever people may be unwilling to recognise your leadership - you know you're a success when you hear them say you're not getting in the way too much.

Clevers can be difficult to lead and during our research we developed some new rules to help guide their leaders. Clever people do not like to be told what to do. Needing to be told seems to undermine their sense of self esteem- clever people shouldn't need telling. Explain and persuade them instead and make the most of your expertise. Hierarchy, of course still exists but using your job title to justify decisions or behaviour is dangerous, clevers will respond far better to expert power than to hierarchical power.

Clever people are at their most productive when faced with real and hard questions which they must solve within meaningful constraints. Clevers get cleverer by organisations maximising opportunities for failure because they tend to respond best to difficult, stretching tasks where their talents are tested to the limits.

Clevers must be given recognition for their work and tend to value recognition from prestigious peers and clients outside their organisations the most. What clever people do is central to their identity - so recognising their achievements is vital.

Clever people see the administrative machinery of the organisation as a distraction from their key value-adding activities. Leading clevers is all about removing obstacles that prevent them doing what they do best. To be an effective leader of clevers you have to know who you are - be confident in your own abilities and say what you mean.

Successful clever teams require diversity. This is not just diversity measured in conventional HR ways but diversity of perspective. Only this can generate the high levels of cognitive conflict that clever teams require. Inevitably, clever teams are also characterised by the high number of relationships they create. The very nature of the complex problems clever teams deal with requires that they handle many relationships outside of their immediate team.

So returning to where we started, as organisations - often under external pressure from the market and the analysts - seek to increase levels of discipline, they create places where clever people don't want to be because they kill any empathy for them within the organisation. A nasty, brutish environment is fatal for any organisation that wants the competitive edge that clevers provide. It's a delicate balance between giving clever people the freedom they need to experiment and grow, and the necessary discipline that gives them useful boundaries. Only then can their potential be released.

'Clever: Leading your smartest, most creative people', by Rob Goffee and Gareth Jones is published by Harvard Business Press. Rob Goffee is a Professor of Organisational Behaviour at London Business School.